Wednesday morning briefing – June 19, 2019
A look at the hedge fund industry in May. How investors can survive the trade wars. Use of fintech services on the rise. High-net-worth investors are looking to forests. And much more in this week’s briefing.
Economic/industry news
The U.S. inflation rate fell to 1.8% in May: US consumer prices barely rise; underlying inflation muted
How alternative investments can help retirement portfolios: The case for alternatives in retirement portfolios
Preparing for modern monetary theory: Don’t dismiss modern monetary theory, research affiliates warns
The outlook for the euro and pound given Brexit uncertainty: How is Brexit affecting currencies?
The importance of international diversification: Diversification means investing overseas too
News and notes (U.S.)
A look at the hedge fund industry in May: State of the industry – May, 2019
The Barclay Hedge Fund Index fell 1.47% in May: Hedge funds’ four-month run in the black ends in May with 1.47 per cent fall
A look at the growth of GP stakes fundraising: GP stakes fundraising is starting to boom
Blackstone raises US$4.5 billion for its second energy fund: Blackstone raises $4.5 billion for energy fund
How investors can survive the trade wars: Trade wars and tariff-mania: An investor survival guide
BlackRock focuses on launching thematic ETFs: BlackRock looks to 5 ‘megatrends’ to expand its ETF business
Legg Mason to make its strategies available to retail investors in Mexico: Legg Mason to offer funds to Mexican retail investors
Mutual fund sales and performance over the past two weeks: Mutual funds scorecard: June 11 edition
News and notes (Canada)
BMO launches a health care banking program: BMO launches program aimed at healthcare professionals
Evolve launches the Evolve Global Materials & Mining Enhanced Yield Index ETF: New global materials and mining ETF launched
Canada had a net outflow of foreign investment in April: Foreign investment in Canadian securities declined in April: StatsCan
Market value of trusteed pension assets fell 1.3% in the fourth quarter of 2018: Market value of trusteed pension assets declined in Q4 2018: StatsCan
On the pulse – New frontiers in fintech
Use of fintech services on the rise: Consumer use of fintechs for banking services skyrockets
Uber entering the fintech space: Uber is making a fintech push with a New York hiring spree
Why traditional banks need to prioritize a digital transformation: The logic of digital change
Use of digital wallets expected to grow by 2024: Half of world’s population to use digital wallets by 2024
How to combat financial crime: Joining the fight against financial crime
What you need to know about Gen Z: 15 things banks & credit unions must know before targeting Gen Z
Visa enters the cross-border, business-to-business transaction market: Visa enters the $125 trillion global money transfer market with new blockchain product
HSBC partners with Canadian firm to enhance AI use: HSBC ramps up artificial intelligence efforts with Element AI partnership
Shoppers Drug Mart to use blockchain technology to monitor quality of medical cannabis: Shoppers to use blockchain technology to track medical cannabis quality
High-net-worth topics
The high-net-worth are investing in forests: Wealthy families are adding forests to their portfolios
Luxury watch prices are increasing: Time is money: How luxury watch collectors show off their precious investments
Polls & surveys – What financials are saying
58% of institutional investors are utilizing smart beta strategies (FTSE Russel): More than half of institutional investors using smart beta strategies: survey
The ability to express empathy is important for financial advisors (STEP Canada): Do you really know how to express empathy to clients?
There is a retirement savings gap around world (WEF): Retirees risk running out of money a decade before death
For financial marketing and investment commentary help, contact us at 1.844.243.1830 or info@ext-marketing.com.
Monday morning briefing – June 10, 2019
Banks can make privacy a competitive advantage. High-net-worth investors are looking for private equity. The difficulties facing fintech firms as they cross borders. And much more in this week’s briefing.
Economic/industry news
The U.S. unemployment rate was steady at 3.6% in May: Jobs report: U.S. economy adds disappointing 75,000 jobs in May, unemployment rate holds at 3.6%
Canadian unemployment rate fell to its lowest level since 1976: Canada added 27,700 jobs in May; unemployment rate hit record low
ECB holds rate steady, pushes out possible rate increase: Euro rises as ECB pushes back rate hike deadline; raises inflation forecast
Would the Fed be willing to cut rates?: Powell hints Fed will cut rates if needed over trade wars
What the next recession could look like: Gauging the next recession’s severity
The benefits of farmland in a pension portfolio: A look at the role of farmland in pension portfolios
Sustainalytics launches ESG screening product: Sustainalytics launches new ESG screening tool and engagement service
News and notes (U.S.)
Who can replace a legend?: The race to replace Larry Fink
What to look for in an outsourced trading partner: Key considerations when choosing an outsourced trading partner
Regrets about going public: Apollo founder ‘absolutely’ regrets taking the firm public
A look at the next CIOs: II’s most wanted allocators: First team
The largest PE firms have been able to diversify across asset types: A new era of scale in the private capital markets
Fidelity reduces fees on target-date funds: Fidelity cuts target-date mutual fund fees as price war spreads
The SEC passed the Regulation Best Interest proposal: SEC passes regulation best interest by 3-1 vote
Household wealth in the U.S. up, growth rate of debt slowed: U.S. first-quarter household wealth hits record as stocks surge
News and notes (Canada)
Fidelity launches ESG funds: Fidelity launches 3 funds aimed at positive change
May was the best month in 2019 for ETF inflows: Canadian ETF inflows in May are the year’s strongest so far
The Canadian ETF industry still has a lot of room to grow: Why Canada’s ETF industry hasn’t peaked yet
An in-depth look at the Canadian mutual fund industry: Mutual Fund Guide 2019
Looking at the compliance challenges facing investments: OSC to launch new advisory committee
Protection of vulnerable investors a top priority of IIROC: IIROC sets strategy through 2022
On the pulse – New frontiers in fintech
Regulators and fintech firms need to coordinate efforts to create a better environment for innovation: BankThink Fintechs, regulators need more common ground
Making money in mobile banking using big data: Data can move mobile banking from ‘convenient’ to ‘monetized’
The difficulties facing fintech firms as they cross borders: 3 challenges of scaling a fintech company across borders
Creighton University introduces a degree in fintech: Creighton University among the first to create a fintech degree
The opportunity and risks of deploying AI: The potentials and pitfalls of applying AI in the financial industry
The U.K. has seen a rise in mobile banking, less use of cash: Rise in mobile banking and contactless as consumers take pick ‘n’ mix approach to payments
Banks can make privacy a competitive advantage: Why now is the ideal time for banking brands to assert their privacy role
Banks’ adoption of open banking will take time and trust: Mastercard’s Wadsworth: Banks need time to fit into open banking future
Why tech talent should consider banking: The war for (banking tech) talent
High-net-worth topics
How to advise people who come into sudden wealth: Advising ‘Jeopardy!’ champ Holzhauer on his $2.5 million payday
The high-net-worth rank trust as the number one requirement in an advisor: Satisfaction and loyalty just the start for high-net-worth clients
The high-net-worth are looking for private equity: Russ Prince: Wealthy investors want more private equity
Polls & surveys – What financials are saying
Asset managers are looking at creating ESG products (Cerulli): More than half of asset managers considering ESG products, Cerulli says
Some doctors are worried about unexpected expenses (MD Management): Is your doctor client worried about finances?
Combining human advice with robo may become the best approach (IFIC): Hybrid distribution channels set to rise: IFIC
For financial marketing and investment commentary help, contact us at 1.844.243.1830 or info@ext-marketing.com.
Upcoming macroeconomic events – June/July 2019
Do you write or edit portfolio manager commentaries? Do you want to stay on top of the macroeconomic events that shape your day-to-day life as a financial services marketer?
If so, here are the big macro events that the ext. team is keeping an eye on over the coming weeks.
- The U.S. will announce its final first quarter gross domestic product (“GDP”) growth rate on June 27. In its second estimate, GDP growth was revised down to 3.1%, from an initial estimate of 3.2%. Fixed investment and private inventories were revised lower, while exports was revised higher. Despite the downward revision, economic growth was still strong and an improvement over the fourth quarter of 2018
- On July 3, the U.S. will announce its balance of trade for May. In April, the U.S. trade deficit narrowed to US$50.8B, versus US$51.9B in March. With fresh new tariffs imposed on China, along with retaliatory tariffs from China, this will be an important reading to determine what type of impact these actions are having on U.S. trade results
- The Canadian unemployment rate for June will be announced on July 5. In May, the unemployment rate was 5.4%, an improvement from the 5.7% in April. This is the lowest rate since 1976. The labour market has been particularly robust, adding jobs and seeing wage gains. Despite weakness in other parts of the economy, labour continues to be a strong spot, which bodes well for the overall health of the economy
- The Bank of Canada (“BoC”) will announce its interest rate decision on July 10. At its last meeting in May, the BoC held its benchmark overnight interest rate steady at 1.75%. The BoC will closely monitor economic data to determine whether or not further rate increases are needed. In its statement, the BoC noted that it will closely monitor consumer spending, the price of oil and developments in global trade. Of particular interest is the BoC’s belief that the recent economic slowdown was temporary
- On July 15, China will announce its GDP growth rate for the second quarter. The Chinese economy expanded 6.4%, annualized, in the first quarter of 2019. Personal spending contributed to growth, partly as a result of the government’s stimulus measures. However, China is deeply embroiled in a trade war with the U.S. and what impact further tariffs by the U.S. government will have on Chinese exports is yet to be seen
For investment commentary support (including monthly and quarterly commentaries, as well as MRFPs), contact us today at 1.844.243.1830 or info@ext-marketing.com.
Monday morning briefing – May 27, 2019
Socially responsible investing by hedge funds on the rise. Using branches to help with a bank’s digital strategy. Institutional investors prepared for a market downturn. And much more in this week’s briefing.
Economic/industry news
The Japanese economy expanded 0.5% in the first quarter of 2019: Japan’s Q1 GDP: The details are worrisome
Will we see an interest rate cut by the Fed?: David Rosenberg says U.S. will cut rates by end of summer
Assets in passive and active U.S. equity funds at US$4.3 trillion each: Passive fund assets draw even with active incumbents in U.S.
U.S. ETF that pays investors will put pressure on fund fees: Fund fees face added pressure with first U.S. fund that pays investors
There were US$45.94 billion of net inflows into global ETFs in April: Global ETF assets reached US$5.57 trillion last month
News and notes (U.S.)
Asian, emerging markets and event driven hedge funds attracting assets: Event driven, Asia, emerging markets hedge funds are big asset winners in April and YTD
Socially responsible investing by hedge funds on the rise: Hedge funds start to figure out socially responsible investing
Appaloosa LP to convert to a family office: David Tepper’s hedge fund days are coming to a close (one day)
PE exits declined in the first quarter of 2019: Exit activity nosedives for PE firms in 1Q
Investors concerned about the return potential from private markets: Private equity loses luster
Possible changes expected to the tax treatment of carried interest profits: Mnuchin says no plan to change carried interest tax treatment
Vanguard launches first actively managed ESG fund: Vanguard’s first actively managed ESG fund now open for investment
News and notes (Canada)
Allianz Group invests $100 million in Wealthsimple: Allianz makes ‘landmark’ investment in Wealthsimple
Purpose launches options ETF: Purpose launches new options ETF
Canadian mutual funds experienced $1.0 billion of outflows in April: ETF sales trump mutual funds in April
Canadian debt levels continue to rise: CMHC says Canadian debt levels hit record highs at end of last year
Canadian executives expect strong revenue growth this year: Economic optimism underpins strong M&A market
On the pulse – New frontiers in fintech
Using branches to help with a bank’s digital strategy: Don’t abandon branches to favor digital banking channels
Outages causing problems for open banking: Open banking revolution on hold as banks fail to prioritise fixing outages
Banks spending heavily in digital transformation to ward off the threat from fintech firms:Banks waking up to fintech threat throw billions into digital
How artificial intelligence can help banks: How AI will supercharge bank and credit union innovation
The top 20 countries in AI readiness: UK near top of AI index
Attracting the Gen Z client: Are you focused on the right customer?
Trade AI Engine will provide a better experience for trade processing: Standard Chartered rolls out Trade AI Engine
Revolut launches group feature for its vault account: Revolut launches Group Vaults as an alternative to joint accounts
HSBC opens artificial intelligence lab: HSBC opens global data lab in Toronto
High-net-worth topics
What wealthy clients want from an advisor: How advisors can stand out to wealthy clients
A look at philanthropy from the CEO of the Center for Effective Philanthropy: What Wall Street gets wrong about giving
Cash holdings on the rise for the ultra-wealthy: A group of superrich investors, spooked by China and potential ‘black swans,’ raises cash to levels not seen in years
Polls & surveys – What financials are saying
Institutional investors prepared for a market downturn (Wilshire): Institutional investors think they’re ready for the next downturn
Approximately 50% of investment managers are using alternative data (IHS Markit): Half of investment managers use alternative data: report
Investment professionals bullish on U.S. equity markets (SPDR): Investors still confident in mid-2019, but risk tolerance dips
For financial marketing and investment commentary help, contact us at 1.844.243.1830 or info@ext-marketing.com.
Four quick tips for creating great client personas
We recently updated our client personas. Not that the old ones were bad, they just weren’t entirely accurate. Some vital concepts were missing. The personas weren’t … well … alive enough for us.
We don’t think we’re the only ones in the financial services industry who’ve dealt (or are dealing) with this issue. Firms across our industry are uncovering more and more meaningful insights about their clients and prospects.
In a sentence, our industry is changing and our clients are changing. If you haven’t revisited your client personas recently, we think now is the time. Changes demand it.
“Our industry is changing and our clients are changing. If you haven’t revisited your personas recently, we think now is the time.”
During our persona exercises, these tips helped guide our work. We believe they’ll apply to your work as well.
1. Hear “straight from the horse’s mouth”
Interview actual clients and prospects. You’ll be amazed at all the little things you pick up. These subtle details are often very important.
2. Create more than one … but not too many
It’d be easy to say that three is the perfect number. But two or four might be just right. Maybe one really is all you need. Just make sure you’ve clearly identified your primary targets. And in the age of micro-targeting, don’t be afraid to go a little deeper too, if your audience warrants.
3. Think hard about needs
What drives your persona to do what they do? Try and dig as deep as you can into their psyche. What makes them tick? Starbucks or Dunkin’ Donuts? Hopefully, you solve one or more of their needs and challenges. If you don’t, they may not be an ideal client/prospect.
4. Always include info about content
Try to uncover where your persona finds the content they need … and what format they like it in. Your content team will be forever grateful if they can tailor their work to the right audience.
“Your content team will be forever grateful if they can tailor their work to the right audience.”
Bonus: Create a persona for your firm
Who are you? What are you all about? You might surprise yourself and find that all these honest answers reveal something you didn’t know was there.
There’s more to say, but we think this is a good start to get you thinking about whether your personas are as robust and up to date as they need to be.
Creating personas can take a lot of time. But what we have found, and what we know you’ll find as well, is that the up-front investment always pays off.
Let us help you segment your client base, create your firm’s personas and strengthen your brand. Contact us at 1.844.243.1830 or info@ext-marketing.com.
Upcoming macroeconomic events – May/June 2019
Do you write or edit portfolio manager commentaries? Do you want to stay on top of the macroeconomic events that shape your day-to-day life as a financial services marketer?
If so, here are the big macro events that the ext. team is keeping an eye on over the coming weeks.
- The Bank of Canada (“BoC”) will announce its interest rate decision on May 29. The BoC held its benchmark overnight interest rate steady at 1.75% after its latest meeting in April. Domestic and global economic activity had slowed more than the BoC projected earlier in the year. The BoC will carefully monitor developments in household spending and global trade before any future rate increases. Markets are expecting the BoC to hold steady again at this meeting
- On May 31, Canada will announce its first quarter gross domestic product (“GDP”) growth rate. Canada’s GDP growth slowed to 0.4% annualized in the fourth quarter of 2018, following an expansion of 2.0% in the third quarter. GDP growth was negatively impacted by a decline in housing investment and exports. After a monthly expansion in January, GDP contracted in February. Canada’s economy has not been immune toe effects of a slowdown in global economic activity, weaker oil prices and trade uncertainty
- The IHS Markit U.S. Manufacturing Purchasing Manager’s Index (“PMI”) for May will be announced on June 3. PMI was 52.6 in April, due in part to a rise in output and new orders. While an improvement versus the previous month, it was the second weakest expansion over the past two years. This reading will give investors an indication of the strength of the goods producing sector
- The U.S. unemployment rate for May will be announced on June 7. In April, the unemployment rate fell to 3.6%, its lowest rate since 1969. Over 260,000 jobs were added in April, led by the construction and health care industry, while wages also advanced. Labour markets continue to be strong which bodes well for the overall health of the U.S. economy
- On June 9, Japan will announce its final first quarter GDP growth rate. Japan’s GDP grew 1.9% annualized in the fourth quarter of 2018, partly as a result of a rise in consumer spending and business investment. This followed a 2.4% contraction in the third quarter, when the country was hit by a series of natural disasters. First quarter GDP growth may be weak, given a decline in industrial output, along with weak exports
- The U.S. will announce its inflation rate for May on June 12. In April, inflation was 2.0%, an increase from the 1.9% in March. Since late 2018, inflation has eased, primarily as a result of the drop in energy prices. However, this has reversed given the recent surge in energy prices
For investment commentary support (including monthly and quarterly commentaries, as well as MRFPs), contact us today at 1.844.243.1830 or info@ext-marketing.com.
Monday morning briefing – May 6, 2019
Movement across borders by millionaires up 14% in 2018. Here are the fintech firms that you need to know for 2019. There is strong optimism and demand for alternative investments. And much more in this week’s briefing.
Economic/industry news
The Fed held its target range steady at 2.25%-2.50%: Fed holds rates steady, citing lack of inflation pressure
The BoE maintained its Bank Rate at 0.75%: Bank of England ups growth view, Brexit keeps rate rise on ice
The Fed’s comments have a big impact on financial markets: Fed needs to develop a better feel for markets
Real assets should benefit from a pause in interest rate increases: How the Fed pause affects real assets
Financial advisor revenue climbed in 2018: Financial advisor revenue reaches record high despite drop in assets
A look at the risks and opportunities in the wealth management industry: Sizing up the competition in wealth management
Understanding how liquidity affects the total cost of an ETF: The importance of ETF liquidity: State Street
How ETFs and index funds can benefit the older generation: Why index funds and ETFs are good for retirees
News and notes (U.S.)
There is strong optimism and demand for alternative investments: Investors remain optimistic about alternatives despite ongoing market volatility
Investors are moving money into hedge funds they are familiar with: Investors weed out their hedge fund managers
78% of hedge fund managers experienced positive performance in the first quarter: Over three-quarters of hedge funds saw positive returns in Q1
Why U.S. VC is poised for another big year in 2019: 15 charts that show US VC could break multiple records in 2019
A look at some of the bigger risks in the fixed income market: This time is different, credit shop argues
Many manufacturers await the SEC’s decision on the ActiveShares proposal from Precidian Investments: A flood of nontransparent active ETFs could be coming – soon
Mutual fund and ETF fees fell in 2018: U.S. fund fees at record lows
Mutual fund sales and performance over the past two weeks: Mutual funds scorecard: April 30 edition
News and notes (Canada)
75% of active Canadian equity managers underperformed the benchmark in 2018: Most Canadian equity fund managers underperformed the S&P/TSX Composite Index in 2018
Canadian VC financing benefited from U.S. investors: U.S. investors powered Canadian VC financing in Q1
A look at cash holdings by sector: Currency & Sector Liquidity Analysis Report: Q1 2019
Macquarie to close equity sales, trading and research businesses: Macquarie shuts down three business lines in Canada
Defined-benefit pension plans in Canada returned 7.2% in the first quarter: Canadian DB pension returns boosted by rallying equities in Q1 2019
On the pulse – New frontiers in fintech
How banks and fintech firms can create a great partnership: 4 myths preventing more fintech+banking partnerships
Traditional banks are looking to fintech for growth: Established companies leveraging fintech capabilities for growth
Here are the fintech firms that you need to know for 2019: These are the top 10 hottest fintech startups and companies in the world
Adopting the cloud can help banks go digital: Banking in the cloud
Thomson Reuters and IBM partner on new regtech initiative: IBM and Thomson Reuters team on AI and data-driven compliance offering
Creating explainable AI is needed to build enterprise and consumer trust: Explainable AI: the future of AI
Global Financial Innovation Network selects firms that will take part in its service: Global sandbox accepts first eight firms
Open data can have a positive impact on society: The beginnings of open data
BMO launches group to fund tech companies: BMO launches Technology & Innovation Group
High-net-worth topics
How the wealthy can teach their kids about money at every stage of life: Here’s how the super rich teach their kids about money
Movement across borders by millionaires up 14% in 2018: Millionaires flee homelands to Canada, Australia, U.S. as tensions rise, taxes bite
MML Investors Services to offer more investment options for high-net-worth clients: MML Investors Services adds new investment options for HNW clients
Polls & surveys – What financials are saying
Americans are behind in their retirement savings (Franklin Templeton): Franklin Templeton: Most Americans lag in saving for retirement
Clients want more service flexibility and pricing options (EY): Wealth management clients want flexibility and transparency, finds EY
Institutional investors interested in holding cryptocurrencies in their portfolios (Fidelity): Fidelity survey finds institutional investors are eyeing crypto
For financial marketing and investment commentary help, contact us at 1.844.243.1830 or info@ext-marketing.com.
Monday morning briefing – April 29, 2019
Fintech and the fourth industrial revolution. Could European equities benefit from a slowdown in U.S. share buybacks? How fintech can help the underserved. Actual fee disclosure missing in the Regulation Best Interest proposal. And much more in this week’s briefing.
Economic/industry news
The U.S. economy grew 3.2%, annualized, in the first quarter: U.S. economy grows 3.2% in the first quarter, well above estimates
The BoC held its benchmark overnight rate steady at 1.75%: Bank of Canada abandons rate-hike bias amid economic slowdown
Mark Carney to leave the BoE in 2020: Carney left his mark at the Bank of England, now it’s time to find his successor
Lack of inflows into equity markets partially the result of investors’ already high allocation to equities: Why stock-market investors aren’t suffering ‘FOMO’ despite return to all-time highs
Could European equities benefit from a slowdown in U.S. share buybacks?: End to $1 trillion buyback binge may help ‘uniquely hated’ asset
A look at some risks that could lead to a market correction: Roubini: 8 risks that could trigger the next correction
ESG investing does not mean lower returns: Does your client think socially responsible investing means poorer returns?
The number of ESG mandates continues to grow: Asset managers answer the growing call for ESG investments
News and notes (U.S.)
$13.69 billion was redeemed from hedge funds in March: Investors continue to pull money from hedge funds despite performance rebound, says eVestment
Asset and wealth management M&A activity had a strong start to 2019: M&A stays high as asset managers take ‘aggressive measures’ to survive
Average size of PE funds has grown this year: The average PE fund size is skyrocketing in 2019
Mary Meeker raises over $1 billion for her fund, Bond Capital: Mary Meeker raises $1.25B for Bond, her debut growth fund
Vanguard experienced net inflows of $62 billion in the first quarter: Vanguard tops Q1 flows: Morningstar
Potential new changes to Volcker Rule could benefit large banks: Wall Street nears a big win in the latest revamp of Volcker Rule
Actual fee disclosure missing in the Regulation Best Interest proposal: Should the SEC require advisors to make actual fee disclosures, as the EU does?
News and notes (Canada)
TD launches alternative funds for its private wealth management clients: TD Asset Management launches alternative investment funds for HNW clients
First Asset rebrands ETFs into CI First Asset: First Asset rebrands ETFs and announces risk rating changes
Canadians interested in responsible investing: RI continues to grow in Canada: Desjardins
The Ontario Teachers’ Pension Plan launches investment platform to help late-stage tech companies: Ontario Teachers’ launches venture capital investment platform
Responding to international events: What should Canadian investors do about the news?
On the pulse – New frontiers in fintech
How fintech can help the underserved: Fintech touching millions of lives by redefining financial services
Digital transformation must keep the needs of customers in mind: Digital banking transformation requires cultural reboot
Ignore the excuses and begin your digital transformation: There’s no excuse why your financial institution can’t embrace digital transformation
Fintech and the fourth industrial revolution: Why fintech should embrace the fourth industrial revolution
Horizontal security layers can minimize the risk of a cyberattack: How horizontal security layers offer your organisation the best protection
People are concerned about their privacy when working with voice assistants: 41% of voice assistant users have concerns about trust and privacy, report finds
The benefits of a robo-advisor: Key benefits of robo-advisors in fintech
The impact of digital assets on financial markets:
The Blockchain comeback: How institutions effectively use digital assets
TD to adopt Microsoft Azure for its data and AI initiatives: TD Bank opts for Microsoft Azure
Fidelity makes additions to its Wealthscape Integration Xchange: Fidelity expands its digital store for advisors
High-net-worth topics
Forbes Family Trust purchases Optima Fund Management: Forbes Family Trust, LGL buy $2 billion fund manager Optima
Polls & surveys – What financials are saying
Investors expressed positive sentiment towards the majority of asset classes (Horizons): Advisors and investors are bullish on 10 of 14 asset classes: survey
Americans don’t feel financially prepared for retirement (Fidelity): Americans are confident about their finances. Retirement? Not so much.
Social and governance issues just as important as environmental concerns (Allianz): Social issues prominent among U.S. ESG investors, survey says
For financial marketing and investment commentary help, contact us at 1.844.243.1830 or info@ext-marketing.com.
Upcoming macroeconomic events – April/May 2019
Do you write or edit portfolio manager commentaries? Do you want to stay on top of the macroeconomic events that shape your day-to-day life as a financial services marketer?
If so, here are the big macro events that the ext. team is keeping an eye on over the coming weeks.
- On April 24, the Bank of Canada (“BoC”) will announce its interest rate decision. At its previous meeting, the BoC maintained its benchmark overnight interest rate at 1.75%. Trade uncertainty and a slowdown in global economic activity factored into the BoC’s decision. While the BoC believes that current rates are still needed to support the economy, the BoC will continue to monitor economic developments before any further interest rate increases
- The U.S. will announce its first quarter advanced gross domestic product (“GDP”) growth rate on April 26. The U.S. economy grew 2.2% annualized in the fourth quarter of 2018, a slowdown from the 3.4% growth in the previous quarter. The advanced figure will give investors an early reading on the strength of the U.S. economy over the first quarter of 2019
- The U.S. Federal Reserve Board (“Fed”) will announce its interest rate decision on May 1. In March, the Fed maintained the target range for its federal funds rate at 2.25% to 2.50%. The Fed also announced that it would slowdown its balance sheet reduction. The Fed’s statement and economic outlook turned cautious, while projecting that there would be no rate increases in 2019. Still, markets will keenly observe and measure any and all comments from the Fed
- The Bank of England’s (“BoE”) interest rate decision will be announced on May 2. The BoE held its Bank Rate steady at its last meeting, citing global economic concerns and Brexit uncertainty. The official departure of the U.K. from the European Union (“EU”) has been delayed, again, as all parties work towards an approved deal. The International Monetary Fund has projected a substantial drop in GDP growth should the U.K. leave the EU without a deal
- Also on May 2, Europe’s final manufacturing PMI (“PMI”) will be announced. Europe’s PMI has been trending lower for over a year. In March, it was led lower by a significant slowdown in German manufacturing. Furthermore, the PMI was hurt by a reduction in export orders and easing price pressures. The announcement will be closely watched to gauge any improvement, or deterioration, in Europe’s economy
For investment commentary support (including monthly and quarterly commentaries, as well as MRFPs), contact us today at 1.844.243.1830 or info@ext-marketing.com.
Monday morning briefing – April 15, 2019
Fintech is here and changing the way financial services firms do business. Customers want to purchase banking products and services digitally. Financial success may be harder for the next generation. The number of VC deals was down in the first quarter of 2019. And much more in this week’s briefing.
Economic/industry news
U.S. inflation rate rose to 1.9% in March: U.S. inflation vaults at highest rate in 14 mos.
The ECB held its benchmark refinancing rate steady at 0.00%: European Central Bank holds interest rates amid gloomy economic outlook
The IMF downgrades its projection of global economic growth for 2019: The global economy: A delicate moment
Why global warming should be important to investors: Curbing global warming essential to investors and planet: report
How active managers can capitalize on market inefficiencies: Does your active manager have an edge?
Oil prices have moved higher in 2019: Oil rises above US$70 on Libya turmoil
Global ETP industry reached assets of US$5.4 trillion in March: Exchange-traded products industry hits new global record of US$5.4 trillion
News and notes (U.S.)
A look at the hedge fund industry in March: State of the industry – March, 2019
Hedge funds returned 5.40% in the first quarter of 2019: Hedge fund returns YTD best since 2012, says eVestment
Institutional investors are looking to hedge funds to diversify risks: Investors keep patience with hedge funds, but seek better deals on fees
Focus on alternative investments could be beneficial for cryptocurrencies: Bitcoin, BlackRock and the rise of alternatives
Setting guidelines for general partner-led secondary fund restructurings: Your private equity fund wants to restructure. Here’s how to deal.
Number of VC deals down in the first quarter of 2019: Massive drop in VC deal count in Q1 2019
Transit and freight drew a lot of interest from VCs in the first quarter: 1Q in review: VCs are fixated on the future of moving people and things
Principal acquires Wells Fargo’s retirement unit: Wells Fargo agrees to sell retirement unit for $1.2 billion
News and notes (Canada)
Scotiabank launches the Scotiabank Alternative Mutual Fund Index: Liquid alts index launched by Scotiabank
Ninepoint launches private debt fund: Ninepoint casts its eye on US private-debt markets
A look at the best performing mutual funds over the first quarter: Top performing mutual funds of Q1
Foresters to focus on insurance: Foresters sells money manager, keeps life business
Equity issuance fell in the first quarter of 2019: Canadian equity underwriting dropped in Q1, debt ticked up
Ontario looks to make changes to financial advisor titles: Ontario to restrict use of planner and advisor titles
On the pulse – New frontiers in fintech
Fintech is here and changing the way financial services firms do business: How fintech is revolutionizing financial services
Customers want to purchase banking products and services digitally: Banks not meeting digital sales expectations
The battle between globalization and localization in fintech: Time for a global fintech platform?
Adoption of machine learning high among financial services firms, but challenges remain: Use of machine learning now pervasive across financial services industry
A look at real-time payments in the U.S. and projections for its growth: US real-time payments are headed to ubiquity. Are banks ready?
How data sharing can help your organization: How to capitalise on the power of modern data sharing
ETFs have revolutionized investing, but certain challenges and risks remain: How ETFs are the technology that is revolutionizing investing
Banks are showing an interest in Central Bank Digital Currencies: At a glance – Central Bank Digital Currency
Coinbase offers debit card using cryptocurrencies: Coinbase launches debit card in the UK
High-net-worth topics
New partnership looks to increase private equity liquidity for the high-net-worth: iCapital partners with Nasdaq to create marketplace for private funds
Shaping the next generation of high-net-worth advisors: Who will be the HNW advisors of the future?
The high-net-worth market in the U.S. is growing rapidly: US high net worth market expanding at record pace: Cerulli
Polls & surveys – What financials are saying
Financial success may be harder for the next generation (Ameriprise): Most parents expect to chip in for kids’ college, weddings: Ameriprise
Private company owners do not have a plan in place to transfer their business (PwC): Almost half of business owners fail to plan for succession: survey
Social media is helping advisors grow their business (Putnam): Almost all advisors are using social media: Survey
For financial marketing and investment commentary help, contact us at 1.844.243.1830 or info@ext-marketing.com.
Monday morning briefing – April 1, 2019
Blockchain is a foundational technology that will take decades to foster. The wealth management industry must take note of how women entrepreneurs are managing their portfolios. Banks must partner with tech firms to avoid losing business to challenger banks. Are there enough private investment opportunities to meet demand? And much more in this week’s briefing.
Economic/industry news
U.S. economic growth was revised down to 2.2%, annualized, in the fourth quarter: U.S. economy revises down Q4 growth rate to 2.2%
What does the inverted U.S. yield curve mean for the economy?: The yield curve just inverted, putting the chance of a recession at 30%
The BoC could be forced to hold interest rates steady as Canada’s yield curve inverted: Canada’s inverted yield curve signals holding pattern for Poloz
FTSE Russell to launch an indicative digital assets index: FTSE Russell to establish indicative digital assets index
Passive to overtake active in the next couple of years, according to Moody’s: Moody’s declares passive investments will surpass active in 2021
Dispelling some ESG investing myths: Ignore the myths: Factor and ESG investing work together
News and notes (U.S.)
Three quarters of hedge fund managers had a positive month in February: Hedge funds continue recovery in February
BlackRock purchases eFront: BlackRock’s Aladdin adds alts power
Are there enough private investment opportunities to meet demand?: Not enough private equity to go around
Charles Schwab introduces flat-fee subscription pricing plan for its premium digital advisory services: Why Schwab’s new pricing plan is a big deal
Regulation Best Interest still a top priority for the SEC: Clayton declines to share timetable for best interest rule
A look at retirement from J.P. Morgan: The 4% retirement rule is back: J.P. Morgan
Public employees likely to stay in retirement plans if they were automatically enrolled: Public fund employees are big fans of auto enrollment – survey
Customized target-date funds’ assets on the rise: Custom target-date funds growing in U.S.: survey
Mutual fund assets were $14.8 trillion at the end of February: Mutual fund assets start year with a growth spurt: Cerulli
News and notes (Canada)
Scotiabank launches the Scotiabank Healthcare+ Physician Banking Program: Scotiabank caters to physicians with new suite of banking services
How the federal budget could impact investors: Federal budget impacts investors, employees, retirees
A look at the OSC’s policy priorities for the next year: OSC will continue to focus on DSCs, client-focused reforms
Onex announces purchase of Gluskin Sheff + Associates: Gluskin Sheff surges on Onex takeover deal
Now that all of the major banks offer ETFs, will it change the investment fund industry?: ETFs: all the banks are in
On the pulse – New frontiers in fintech
Banks must partner with tech firms to avoid losing business to challenger banks: Citi urges incumbents to grow their own challenger brands as new entrants shrink the market
Big data can help all facets of the asset management business: Big data helps asset management industry across value chain
Blockchain is a foundational technology that will take decades to foster: Blockchain is dead
Eliminating paper cheques for businesses: Mineral Tree offers businesses an alternative to paper checks
U.K. financial services firms not prepared for the AI revolution: The financial services industry is not ready for the AI revolution, new study finds
The Federal Reserve Bank of New York establishes advisory group to review and provide guidance on fintech: New York Fed launches fintech advisory group
The Information Commissioner’s Office in the U.K. looking to provide environment to support innovation: ICO opens sandbox beta phase to enhance data protection and support innovation
A look at the new Apple Card: How Apple Card works
Innisfil, Ontario to begin accepting bitcoin as payment for property taxes: Ontario town to accept bitcoin for tax payments, in one-year pilot project
High-net-worth topics
The wealth management industry must take note of how women entrepreneurs are managing their portfolios: How women entrepreneurs are redefining wealth management:
High-net-worth clients are demanding private investments, here is how to help them: Russ Prince: Here’s how to help your wealthy clients invest in PE
Polls & surveys – What financials are saying
More than half of gig workers are saving for retirement (T. Rowe Price): Gig workers report being more involved in their finances
Signals point to a weak Canadian economy in the first half of 2019 (Russell Investments): Modest weakness for Canada in Q2: Russell Investments
Canadians approaching retirement saw their wealth increase, largely due to real estate (C.D. Howe): Housing market boosted wealth of Canadians approaching retirement
For financial marketing and investment commentary help, contact us at 1.844.243.1830 or info@ext-marketing.com.
Monday morning briefing – March 18, 2019
Wealth management falling behind in creating a great mobile app experience for clients. Price growth in luxury real estate slowed in 2018. Global banking regulators offer guidance on exposure to cryptoassets. And much more in this week’s briefing.
Economic/industry news
International Economic Data Snapshot – includes aggregated data of the worldwide economy: Snapshot: International economic data
The U.S. inflation rate was 1.5% in February: US consumer prices rise for the first time in 4 months
The Bank of Japan held its key short-term interest rate at -0.10%: BOJ keeps policy steady, cuts view on exports and output
Where’s the inflation?: Low inflation is Federal Reserve’s maddening unsolved mystery
London may remain an important financial center, even after Brexit: What does the #brexit vote mean for banking and fintech?
Strategic beta ETPs ended 2018 with $797 billion in assets: Strategic beta ETP market still expanding
Climate change also a risk to life insurers: Why life insurers are investing with ESG in mind
News and notes (U.S.)
A look at the hedge fund industry in February: State of the industry – February, 2019
The Eurekahedge Hedge Fund Index rose 0.86% in February: Hedge funds up 0.86 per cent in a calm month, says Eurekahedge
Unicorns going public: The unicorns are coming (to Wall Street)
Mutual funds participating in shareholder activism: Mutual funds start to put their mouth where their money is
Salt Financial to offer ETF that pays investor: Forget no fees. ETF breaks ground by offering to pay investors
JP Morgan to launch ETF with 0.02% expense ratio: JPMorgan planning cheapest-ever stock ETF
Charles River Development partners with Axioma to enhance its portfolio management platform: State Street ramps up competition with BlackRock’s Aladdin
News and notes (Canada)
Franklin Templeton launches liquid alternative fund: Franklin Templeton introduces alt mutual fund
Canadian annuity sales hit the highest level ever in 2018: Annuity sales hit record highs in 2018, led by buyouts: report
Wealthsimple launches Wealthsimple Trade: Wealthsimple launches zero-commission trading app
CIFSC announces new alternative-focused categories: IFSC category definitions for alternative funds
Brookfield to acquire stake in Oaktree Capital: Brookfield reaches agreement to acquire 62% of Oaktree Capital
On the pulse – New frontiers in fintech
Fintechs have an opening to help small- and medium-sized businesses: SMEs “historically ignored” by banks
The rising importance of a digital scientist: Standardising the data scientist
Looking at the impact from data control on banks and customers: Data control changes are in the air: What does it mean for banks and consumers?
BNP Paribas launches AI assistant to help customers manage their budget: BNP Paribas Luxembourg brings a touch of Genius to mobile banking app
Fintechs need to be held to the same consumer protection standards as banks: Why are fintechs getting a regulatory pass?
Wealth management falling behind in creating a great mobile app experience for clients: J.D. Power: Wealthy clients not happy with mobile apps
Global banking regulators offer guidance on exposure to cryptoassets: Regulators set guidance for banks’ cryptoasset exposures
High-net-worth topics
Why family meetings should be considered a must for high-net-worth families: The importance of family meetings
The high-net-worth are showing an interest in gold: Fresh optimism on gold, thanks to ‘triple bubble in stocks, bonds and real estate’
Price growth in luxury real estate slowed in 2018: Wealthy investors see end to stellar returns from luxury homes
Polls & surveys – What financials are saying
Over 20% of working Americans aren’t saving money (Bankrate): Why aren’t Americans saving? They just haven’t gotten around to it, survey says
Canadians struggling with debt (FPSC and Credit Canada): One in 5 Canadians will need to liquidate an asset to pay for debt: survey
Advisors should use the same set of questions for prospective clients (Morningstar): Advisors can reduce gender bias: study
For financial marketing and investment commentary help, contact us at 1.844.243.1830 or info@ext-marketing.com.
Upcoming macroeconomic events – March/April 2019
Do you write or edit portfolio manager commentaries? Do you want to stay on top of the macroeconomic events that shape your day-to-day life as a financial services marketer?
If so, here are the big macro events that the ext. team is keeping an eye on over the coming weeks.
- On March 20, the U.S. Federal Reserve Board (“Fed”) will announce its interest rate decision. At its latest meeting in January, the Fed maintained the target range for its federal funds rate at 2.25% to 2.50%. The Fed is expected to hold its interest rate steady for a second consecutive meeting partly as a result of the slowing global economy, easing inflation and continued trade uncertainty
- The Bank of England (“BoE”) will announce its interest rate decision on March 21. The BoE has held the Bank Rate steady at 0.75% since its last increase in August 2018. The BoE intends to raise rates at a gradual pace. However, slowing domestic and global economic growth, as well as the uncertainty of Brexit, will weigh heavily on the BoE’s decision
- Canada will announce its inflation rate for February on March 22. Inflation fell to 1.4% in January, the lowest rate in over a year. This pullback was primarily the result of falling gasoline prices and an overall decline in the price of food. The Bank of Canada (“BoC”) expects lower gasoline prices to persist, which may keep inflation below 2% throughout 2019
- On March 27, the U.S. will announce its balance of trade for January. The U.S. trade deficit widened to US$59.8 billion in December. Exports fell 1.9%, while imports rebounded, rising 2.1%. As a result of ongoing trade uncertainty, this will be a closely watched measure to anticipate its impact on the overall health of the U.S. economy
- China will announce its first quarter gross domestic product (“GDP”) growth rate on April 16. China’s GDP grew 6.4% in the fourth quarter, slowing from the 6.5% recorded in the third quarter. While economic activity has been affected by the trade dispute with the U.S., the Chinese government is looking to boost domestic economic activity through fiscal policy. Furthermore, the People’s Bank of China has added more liquidity into the system through its ongoing reduction of the required reserve ratio for banks
For investment commentary support (including monthly and quarterly commentaries, as well as MRFPs), contact us today at 1.844.243.1830 or info@ext-marketing.com.
Monday morning briefing – March 11, 2019
What client on-boarding will look like in the future. The global banking sector has the most exposure to cyber risks. Private equity mandates in emerging markets raised US$90 billion in 2018. And much more in this week’s briefing. Enjoy!
Economic/industry news
International Economic Data Snapshot – includes aggregated data of the worldwide economy: Snapshot: International economic data
The U.S. unemployment rate fell to 3.8% in February: Job creation grinds to a near-halt in February; wages still on the rise
The Canadian unemployment rate was 5.8% in February: Canada’s economy gains 55,900 jobs, beating expectations
The BoC held its central interest rate steady at 1.75%: Bank of Canada waters down rate conviction amid growth slowdown
The ECB held its central interest rate steady: ECB pushes back rate hike, announces new stimulus to revive growth
Tariffs are imposing great costs on American businesses and consumers: Evidence grows that Trump’s trade wars are hitting U.S. economy
The S&P 500 Index bottomed on March 9, 2009. Where does the market stand now?: 10 years after the market hit bottom, where are we now?
Different strategies for ethical investing: How to invest ethically
It’s time to look at the opportunities, not just the risks, from energy transition: Lessons in measuring carbon risk and opportunities in public equities
What Millennials are looking for in a financial advisory firm: Successful millennials want real advice
Why alternative investments should be included in all portfolios: Why alternative investments have a place in your portfolio
The world’s best banks: The world’s best banks: ING and Citibank lead the way
News and notes (U.S.)
JP Morgan’s “2019 Guide to Alternatives”: J.P. Morgan releases 2019 Guide to Alternatives
The market cycle of PE buyouts is quick: Downturn opportunities don’t last long in the world of PE buyouts
Hiring increasing at private capital firms: Private capital firms are beefing up their fundraising teams
How PE can benefit from the qualified opportunity fund: Private equity and the opportunity zone gold rush: Who will seize the opportunity?
PE mandates in emerging markets raised $90 billion in 2018: Private capital fundraising in emerging markets hits record levels in 2018
Interest in PE continues: Blackstone nears $20 billion for flagship buyout fund
Goldman Sachs launches ETFs tracking indices created by Motif: Goldman Sachs and Motif launch 5 ETFs focused on innovation
U.S. individual investors’ allocation to equities increased in February:Asset allocation survey: Equities rebound in February
Mutual fund sales and performance over the past two weeks: Mutual funds scorecard: March 5 edition
A look at target-date funds’ performance over the past 10 years: Target-date funds: The grades are in
Vanguard announces its upcoming launch of the Global ESG Select Stock Fund: Vanguard plans its first actively managed ESG mutual fund
Apex bolsters its U.S. expansion: Apex acquires Atlantic Fund Services
Coin will allow investors to invest in one or multiple causes: John Hancock startup opens impact investing to the masses
News and notes (Canada)
IA Clarington launches liquid alternative fund: IA Clarington launches liquid alt, international equity funds
Desjardins launches two ETFs with responsible investing mandates: Desjardins launches two RI ETFs
Canadian ETFs experienced $1.3 billion in net inflows in February: In Canada, 23 ETFs launched in February
Empire Life launches tool to help plan participants track their retirement goals: Empire Life launching retirement and savings tool
IFIC and BEworks provide suggestions on how to improve client statements:How to improve CRM2 statements
Could we see a slowdown in Canadian dividend growth in 2019?: Canadian dividend growth will slow this year
On the pulse – New frontiers in fintech
The global banking sector has the most exposure to cyber risks: Banking is most exposed sector to cyber risks: Moody’s
Regulatory sandboxes are great for innovation, but there are some limitations: Sandboxes offer key to fintech innovation
Financial services firms have steps to take towards their digital transformation: Financial-services firms falling behind in tech transformation
Customer data vital to the success of digital transformation: Power of customer insights will separate digital banking winners & losers
The adoption of open banking has been limited: Open banking – build it and they will come?
How fintech is helping people meet their financial goals: The effect of fintech on wealth management
Ant Financial launches tool to help financial services firms with their digital challenges: Ant Financial launches core banking product
What client on-boarding will look like in the future: The future of client onboarding for financial institutions
Start with tech, then the financial side: Are banks customer focused?
Tech firms engaged in blockchain development projects: Big tech’s blockchain projects haven’t disrupted banks – yet
One-third of Canadians used a robo-advisor to open or fund an RRSP: Robo advisor RRSP stats a ‘wake-up call’ to firms
High-net-worth topics
The high-net-worth should increase their exposure to private placements: Cambridge Associates: HNW investors should have 40 percent in private placements
Here is where the ultra-high-net-worth live: The top 10 cities where the mega rich live
Stock market volatility hurt U.S. household wealth in the fourth quarter: U.S. household wealth slumped in fourth quarter amid stocks rout
Polls & surveys – What financials are saying
Canadian businesses may be missing an opportunity to increase revenue through global trade (RBC): Despite opportunity, Canadian businesses see barriers to global trade: RBC poll
More than half of Millennials use or are willing to try using a robo-advisor (Angus Reid): Millennials more likely to try robo-advice, says Angus Reid
Financial assets held by women expected to rise (CIBC): Canadian women to control nearly $4 trillion by 2028
For financial marketing and investment commentary help, contact us at 1.844.243.1830 or info@ext-marketing.com.
Monday morning briefing – March 4, 2019
An in-depth look at how Amazon is entering the financial services industry. Eleven fintech firms to keep an eye on. How to attract high-net-worth investors. The four key pillars to help protect your company against cyberattacks. And much more in this week’s briefing.
Economic/industry news
International Economic Data Snapshot – includes aggregated data of the worldwide economy: Snapshot: International economic data
U.S. GDP grew 2.6%, annualized, in the fourth quarter: Fourth-quarter GDP increases 2.6%, better than expected
Canadian GDP growth slowed to 0.4%, annualized, in the fourth quarter: Canadian economic growth slowed in the fourth quarter
Canada’s inflation rate fell to 1.4% in January: Canada’s inflation rate falls to 15-month lows on lower gas prices
Global ESG ETFs experienced $730 million of inflows during January: Global inflows into ESG ETFs steady in January
The Financial Conduct Authority found fee disclosures lacking: U.K. Regulator zeroes in on asset managers’ fee disclosures
Bondholders could benefit as companies fear a downgrade: No BBB bust as $140 billion bet on fallen angels is ‘overpriced’
What retirement will look like in the future: 5 trends that could reshape retirement
The challenges of an index becoming more concentrated: S&P 500? More like the S&P 50
A look at four major real estate markets: What’s driving demand in global real estate
News and notes (U.S.)
The Eurekahedge Hedge Fund Index rose 2.35% in January: Hedge funds record best January since 2006
Hedge funds more concentrated in managers’ best ideas: Never before has the fate of hedge funds turned on so few stocks
Hedge fund assets rose despite redemptions: Hedge fund assets up in January as performance offsets investor redemptions
It could be another strong year for PE fundraising: Here’s why 2019 could be another fundraising boom year for US PE
Cost-cutting alone cannot help companies grow: The lesson of The Kraft Heinz nosedive: Radical cost-cutting is out, brands are back
A comprehensive look at women in VC: The VC female founders dashboard
Fidelity has expanded its multi-factor ETF lineup: Fidelity debuts three multifactor ETFs
Another vote on Brexit could be helpful: Carlyle’s David Rubenstein wants second Brexit vote as UK PE deals dwindle
Mutual fund assets rose 5.3% in January: Mutual funds add $947 billion in assets in January
News and notes (Canada)
Mackenzie launched three more liquid alt funds: Mackenzie introduces liquid alt funds
Franklin Templeton launched three ETF portfolios: Franklin Templeton enters ETF portfolio fray
The BoC proposed reforms to the Canadian Dollar Overnight Repo Rate Average: Bank of Canada unveils benchmark reform proposals
The OSC declined a Bitcoin fund application from 3iQ: Regulators refuse proposed Bitcoin fund amid investor protection concerns
Canadian mutual fund assets grew in January, despite net redemptions: Mutual funds saw $53 million in net redemptions for January
Tips to successfully invest in your RRSP: 6 rules for successful RRSP investing
On the pulse – New frontiers in fintech
Automating testing can have a big impact on the success of a digital transformation: Driving a successful digital transformation strategy
Canadian’s usage of alternative payment tools has increased 14% since 2016: Canadians are increasingly choosing alternative payment tools
The growth of payment alternatives will bring new and complex regulatory requirements: Harnessing regtech to build payments reputation
An in-depth look at how Amazon is entering the financial services industry: Everything you need to know about what Amazon is doing in financial services
Financial services companies are expanding their use of AI: The world’s biggest banks are doubling down on artificial intelligence
Cybersecurity spending expected to grow: Cybersecurity spending to reach $223.7 billion by 2024, says Rethink
The four key pillars to help protect your company against cyberattacks: Four steps in cyber risk management
UOB integrating AI to speed up loan process: UOB applies AI to transactional data to speed up loan approvals for SMEs
11 fintech firms to keep an eye on: Fintech focus – 11 to watch now
Retail shopping through virtual reality and blockchain: The convergence of blockchain and online VR retailing
High-net-worth topics
The high-net-worth demand personalization: Themes from the 2019 U.S. Millionaire Report: Personalization
How to attract high-net-worth investors: You don’t need a Super Bowl ad to attract high-net-worth clients
Polls & surveys – What financials are saying
Global corporate debt reached $13 trillion at the end of 2018 (OECD): Why corporate debt is a risk to the global economy
The majority of economists expect a recession in the U.S. by the end of 2021 (National Association for Business Economics): 75% of business economists expect a US recession by 2021: survey
Women don’t believe they will be able to afford their desired lifestyle in retirement (RBC): A third of Canadian women not confident about maintaining lifestyle in retirement: survey
For financial marketing and investment commentary help, contact us at 1.844.243.1830 or info@ext-marketing.com.
Monday morning briefing – February 25, 2019
Asset allocators are looking for ways to access private equity. Is Apple entering the credit card market? The number of Canada-based targets from activist investors grew in 2018. And much more in this week’s briefing.
Economic/industry news
International Economic Data Snapshot – includes aggregated data of the worldwide economy: Snapshot: International economic data
European inflation down to 1.4% in January: Top News: Eurozone consumer inflation slows to 1.4% in January
The U.S. Federal Reserve Board released its policy meeting minutes: Fed releases minutes from Jan. 29-30 policy meeting
Housing and investment risks could put the BoC on hold, for now: Bank of Canada’s Poloz says rate hike path ‘highly uncertain’
Private equity’s interest in ESG is growing: ESG a growing priority for private equity finds PwC survey
Global dividends rose 9.3% in 2018: Global dividends surged to new record in 2018: Janus Henderson
Could a lack of transparency in index creation harm investors?: What’s really in your index fund?
Exchange-traded products continued to experience robust growth: Size of exchange-traded products industry tops US$5 trillion: report
The U.K. government is looking to add more illiquid investments to defined-contribution plans: U.K. consults on incorporating illiquid assets in DC investments
The greatest benefit from ETFs is how you use them: Are ETFs about to rule the world?
News and notes (U.S.)
The Barclay Hedge Fund Index rose 3.88% in January: Hedge funds make solid start to 2019
Institutional investors plan to hold or increase their exposure to hedge funds this year: After hedge funds’ mediocre year, investors still want more
Redemptions from hedge funds were $42.3 billion in December: Hedge fund redemptions hit five-year high of USD42.3bn in December
Corporate VCs invested $52.95 billion into start-ups in 2018: The rise of corporate VC
Newer private equity funds are attracting much more capital than their predecessors: More than 90% of PE funds are outpacing their predecessors
Asset allocators are looking for ways to access private equity: McKinsey: Private equity growth drives creative fund structures
Inflows into active U.S. equity funds outpaced passively-managed funds: Active beat passive in asset flows in January: Morningstar
Mutual fund sales and performance over the past two weeks: Mutual funds scorecard: February 19 edition
Future mergers could have greater government scrutiny: What the T-Mobile, Sprint hearing means for the future of M&A in the US
The SEC issued a proposal to allow IPOs to gauge market interest before filing: SEC proposes easing IPO rules
News and notes (Canada)
CC&L launched three liquid alternative funds: CC&L Funds introduces 3 liquid alts
Provisus Wealth Management launched nine actively managed PTFs: Provisus: We’re putting our money where our mouth is
Impact investments have grown in Canada: Impact investing gains traction in Canada
The number of Canada-based targets from activist investors grew in 2018: ‘You need to watch out’: Activist investing stronger than ever in Canada, M&A lawyer says
International sub-advisors don’t improve performance: International subadvisors don’t have a performance edge
Volatility was good for some active managers in 2018: Stock-pickers need some volatility
On the pulse – New frontiers in fintech
How to take a step forward in digital banking in 2019: Digital banking strategies and investments for 2019
How private banking can benefit from digitalization: Why digitalization is the way forward for private banking and wealth management
Companies are looking toward a product-based structure to help in their digital transformation: Gartner: organisations shifting to product-centric application delivery model for digital transformation
Customers need to be shown how open banking will help them: Consumers don’t know what open banking is – and that’s OK!
Is Apple entering the credit card market?: Apple could be working with Goldman Sachs on a credit card
There is a big difference between technology and handling a customer’s money: Are you in banking or technology?
A look at what the future may hold for wealthtech: The future of wealthtech
A look back at the technological advancements in the financial services industry, and a look ahead to where the industry is going: The growth of fintech: From the first wire transfer to blockchain technology & beyond
National Bank will use AI software to help with cybersecurity: Element AI, National Bank partner on cybersecurity
Helping institutional investors with digital asset trading: Bank Frick targets institutional investors with digital asset trading
High-net-worth topics
The Mather Group has acquired family office, Astraeus Advisers: Chicago’s Mather Group buys $1 billion family office
High-net-worth clients should be looking at different types of alternative investments: Too few investors are looking beyond stocks and bonds, wealth advisor says
Manulife bolstering its services for the high-net-worth: Manulife targets Canada’s rich in industry a decade behind U.S.
Polls & surveys – What financials are saying
Important investment themes you need to know for 2019 (Raymond James): 10 hot investment themes for 2019: Raymond James
Advisor-directed clients are receptive to a fee-based structure (Cerulli Associates): Advisor-reliant clients prefer fee-based accounts: survey
Many Canadians don’t understand the difference between an RRSP and a TFSA (BMO): Better advice needed on the difference between TFSAs and RRSPs
For financial marketing and investment commentary help, contact us at 1.844.243.1830 or info@ext-marketing.com.
Monday morning briefing – February 19, 2019
Hedge funds can shine amid volatility. The first U.S. bank-backed cryptocurrency may transform payments. Advancing wealthtech through the “American AI Initiative.” Private equity predictions for 2019. And much more in this week’s briefing.
Economic/industry news
International Economic Data Snapshot – includes aggregated data of the worldwide economy: Snapshot: International economic data
U.S. inflation rate fell to 1.6% in January: Cheaper gasoline restrains US consumer prices
The Japanese economy expanded 1.4%, annualized, in the fourth quarter: Japan Q4 GDP rebounds but trade frictions remain a concern
U.K. GDP growth slowed in the fourth quarter: Car industry malaise drags down UK GDP growth to 0.3%
ESG funds recorded another strong year in 2018 with $5.5 billion of net flows: ESG funds outperform in growth and returns in 2018: Morningstar
Looking for more ESG disclosures: Institutional investors seeking greater ESG disclosure
ESG investing can provide a lot of benefits to advisors: How ESG rankings can help advisors reduce investment risks
In the world’s largest pension markets, defined contribution plans now hold a greater share of total pension assets: DC pension assets surpass DB in world’s largest markets: report
News and notes (U.S.)
A look at the hedge fund industry in January: State of the industry – January, 2019
The Eurekahedge Hedge Fund Index gained 2.22% in January: Most hedge funds started 2019 on positive note with returns of 2.22 per cent, says Eurekahedge
Market volatility may allow hedge fund managers to shine: Time for active managers to prove their worth
PE buyout multiples have risen, impacting the M&A market: PE-backed companies are catching up to their public counterparts
A look at what might be in store for private equity in 2019: 10 predictions for private equity in 2019
VC firms invested approximately $12 billion into fintechs in 2018: Why venture capitalists love fintechs
VC investors expect to increase their usage of data for investment decisions: Appetite for information growing in VC space: Pitchbook
Expect more active ETFs to be launched: More active ETFs are coming to market
FINRA released guidance on cybersecurity for brokerages: FINRA bolsters its cybersecurity guidance
JP Morgan has created the JPM Coin: JP Morgan is rolling out the first US bank-backed cryptocurrency to transform payments business
Fidelity and Charles Schwab to offer iShares as part of their commission-free trading: Schwab, Fidelity both make big moves on commission-free ETFs
News and notes (Canada)
Liquid alternatives could provide retail investors a hedge against market volatility: New ‘liquid alts’ a hedge against stock and bond volatility
A look at potential new products in the Canadian ETF space: What can Canadian ETF investors expect in 2019?
An analysis of mutual fund categories and their cash holdings: Currency & sector liquidity analysis report: Q4 2018
Canadian CEOs to focus on organic growth in 2019: Canadian CEOs expect global growth to decline or stagnate
National Bank has launched four ETFs, which include a liquid alternatives ETF: National Bank Investments enters ETF market
Invesco launched a Canadian dollar-hedged version of its international low volatility ETF: Invesco adds to currency-hedged Canadian ETF lineup
On the pulse – New frontiers in fintech
The fintech sector should continue to grow in 2019: Already thriving, the fintech sector is set for more
The “American AI Initiative” will help advance wealthtech: Federal support for artificial intelligence should benefit wealthtech
Banks should turn these technological advancements into opportunities: When banks turn disruption to innovation
Robo-advisors have expanded their offerings by entering the pension market: Are pensions about to change robo-advice?
Fintech to focus on the small business market, not only the consumer market: Small businesses are the next wave of fintech focus
Will smaller banks merge in order to push forward their digital transformation?: Too big to fail … Too small to succeed
A look at why regtech has attracted so much capital investment: This is how global regtech investment more than doubled in 2018
Fintech firms collaborate to launch new chatbot for banks: Fidor partners with Finn AI to launch a new AI-powered chatbot for banks
UBank launched Mia, a digital human to help clients with their home loan application: UBank launches ‘digital human’ home loan assistant
Fenergo has launched a solution to help financial institutions navigate regulations through the client lifecycle: Fenergo reveals client lifecycle management software: Rules as a Service
A look at a few sectors that have benefitted from blockchain technology and should continue to advance its usage in 2019: Which sectors will be first to mainstream blockchain in 2019?
How these four fintech firms are changing the industry: What can four innovative fintech startups and their investors tell us about the future?
Ant Financial enters European market with purchase of WorldFirst: Alibaba’s Ant Financial buys UK currency exchange giant WorldFirst reportedly for around $700M
High-net-worth topics
How ING Trusts can save the high-net-worth in both income and transfer taxes: ING Trusts: The hot trend in HNW estate planning
To avoid losing the assets of your older high-net-worth clients, engage with the younger generation: Your best clients could be gone soon – Are you ready to replace them?
Polls & surveys – What financials are saying
Fund managers are holding an overweight in cash (Bank of America Merrill Lynch): Fund managers remain bearish despite rally: Merrill
52% of Canadians expect to save money this year (BMO): Canadians optimistic about saving this year
CPPIB sees lower returns ahead: Brace for weaker returns amid global economic winter, says CPPIB chief
For financial marketing and investment commentary help, contact us at 1.844.243.1830 or info@ext-marketing.com.
Monday morning briefing – February 11, 2019
A look at long/short equity hedge funds during the fourth quarter of 2018. Preparing your employees for the age of digital disruption. The impact of regulation on fintech. Will we see a shift back to active management? And much more in this week’s briefing.
Economic/industry news
International Economic Data Snapshot – includes aggregated data of the worldwide economy: Snapshot: International economic data
The Canadian unemployment rate rose to 5.8% in January: Canadian job market surges on record private-sector hiring
European GDP expanded 0.2% in the fourth quarter: EU’s GDP growth rate slows down to 1.5 pct in Q4 2018
BoE holds its Bank Rate steady at 0.75%: Bank of England leaves policy rate unchanged at 0.75% as expected
The RBI cut its benchmark interest rate: Five key takeaways from India’s new central banker’s maiden policy review
Global net flows into investment funds were $606 billion in 2018: Global fund flows had worst year since 2011: Morningstar
Here are some ESG trends for 2019: Emerging MSCI ESG trends to watch in 2019
The three categories of ESG investments: 3 ESG investment strategies: passive, integrated and active
The green bond market is set to grow in 2019: Global “green bond” issuance set to surge in 2019
Clients showing more interest in sustainable investing: How sustainability is becoming an industry focus
Will we see a shift back to active management?: Is the index bubble about to burst?
Some wealth management trends for 2019 that you need to know: 10 wealth management trends in 2019: Aite
Operating margins falling despite higher assets: Asset growth no longer equals fatter profits for fund managers
News and notes (U.S.)
Bill Gross announces his retirement: Bill Gross retires after storied four-decade career in bonds
Hedge funds with a poor December rebounded in January: December’s strugglers bounced back in January, says Lyxor
A look at long/short equity hedge funds during the fourth quarter of 2018: Fourth quarter 2018 review of the long/short equity hedge fund space
Carlyle Group had a sharp increase in pre-tax distributable earnings: Carlyle outperforms rivals in latest earnings report
U.S. retail investors out of the stock market: Mom and pop sit out rally, with stock exposure at 6-year low
Fidelity launches two model portfolios that will use ETFs: Fidelity debuts its first Model Portfolios that employ ETFs
Ark launches the ARK Fintech Innovation ETF: ARK rolls out fintech ETF
Institutional plans in the U.S. struggled in 2018: ‘Worst calendar year performance’ for U.S. institutional plans since 2008: report
Looking to improve U.S. retirement savings: Rep. Kind to reintroduce Retirement Savings Act
BB&T to purchase SunTrust Banks: BB&T to buy SunTrust in biggest bank merger in a decade
News and notes (Canada)
Canadian ETF assets fell 3.9% in the fourth quarter: Q4 asset drop couldn’t stop Canadian ETF boom
The S&P/TSX Composite Index could be a strong relative performer in 2019: It’s time to stop ignoring the TSX
Institutional portfolios benefited from the strong performance of Canadian real estate in 2018: Canadian real estate boosted institutional portfolios in 2018
Know Your Client shouldn’t be the same for all clients: MFDA warns against one-size-fits-all approach to KYC
IGM Financial invests more money into fintech firm: Personal Capital raises $50 million in new funding
Vanguard adds two more asset allocation portfolios to its lineup: Vanguard launches two asset allocation ETFs
A rough equity market in the fourth quarter hurt Canadian defined-benefit pension plans: Canadian DB pensions finish 2018 in negative territory: reports
On the pulse – New frontiers in fintech
The impact of regulation on fintech: Fintech innovation – is regulation a significant barrier?
How fintech will help the unbanked and underbanked in 2019: How will fintech offer disruption to financial services in 2019?
Canada is behind in its potential to adopt open banking: Canada lags in readiness for ‘open banking’
How AI can help perform testing in your digital initiatives: Artificial intelligence in testing: Top five use cases in financial services in 2019
Fintech’s impact on the future of wealth: Wealth is the next big fintech game changer
Fintechs aren’t providing the necessary help to millennials: How fintech companies are failing to help millennials with financial security
How to access the mobile ad market: How financial marketers can tap the surging mobile ad market
A look at why companies should consider a digital transformation: Why digital transformation? Challenge vs opportunity
Preparing your employees for the age of digital disruption: Learning and development in the digital age
A look at why bank branches shouldn’t be closed down: Why banks should stop closing branches
Automating trade data: A smarter way to report on financial trades?
Goldman Sachs and HSBC invest in tech start-up: Goldman Sachs and HSBC invest $20m in startup trying to make banks more like Apple
Barclays makes investment into fintech start-up: Barclays invests in payment-linked loyalty startup Bink
Scotiabank to launch fintech lab in Mexico: Scotiabank partners with Mexican university to open fintech accelerator
Trade groups team up to push digital assets and blockchain forward: Blockchain associations form new lobby group
High-net-worth topics
A look at family offices and their potential future: Multi-single-family offices are the future of UHNW families
Here a few mistakes the high-net-worth make: 10 big financial mistakes wealthy families make
A look at how the ultra wealthy are currently investing: Tiger 21 annual conference: CNBC interview with Tiger 21 founder Michael Sonnenfeldt on how the ultra-wealthy invest
Polls & surveys – What financials are saying
Asset managers see steady growth over the next seven years (Bloomberg): 5 asset management predictions for the next 7 years
The Canadian housing market and consumption could slow in 2019 (PIMCO): Downside risks for Canadian economy: PIMCO
Looking after a family member in cognitive decline has significant impact on family finances (RBC): The impact of cognitive decline on families’ finances: RBC survey
For financial marketing and investment commentary help, contact us at 1.844.243.1830 or info@ext-marketing.com.
Upcoming macroeconomic events – February/March 2019
Do you write or edit portfolio manager commentaries? Do you want to stay on top of the macroeconomic events that shape your day-to-day life as a financial services marketer?
Knowing what’s happening and why it matters is important. To help you stay on track, here are the big macro events the ext. team is keeping an eye on over the coming weeks.
- On February 27, Canada’s inflation rate for January will be announced. The inflation rate rose from 1.7% to 2.0% in December, led higher by a rise in the price of food and air transportation. Inflation has slowed recently primarily as a result of the pullback in oil prices, easing some of the inflationary pressures building within the Canadian economy
- Canada will announce its fourth quarter gross domestic product (“GDP”) growth rate on March 1. The Canadian economy grew 2.0% annualized in the third quarter, a slowdown from the second quarter. Consumer spending and real estate, both susceptible to the impact of higher interest rates, experienced weakness during the third quarter. These factors and the prolonged slump in oil prices could weigh heavily on fourth quarter results
- Also on March 1, the final reading of the U.S. Manufacturing Purchasing Managers’ Index (“PMI”) for February will be announced. Following a decline from mid-2018, PMI rose from 53.8 to 54.9 in January. This increase was driven by higher new orders and robust manufacturing production levels, while employment also expanded. PMI will be closely watched to get an early reading on the health of the U.S. economy
- The Bank of Canada’s (“BoC”) interest rate decision will be announced on March 6. The BoC held its benchmark overnight interest rate steady at 1.75% at its most recent meeting in January, and is expected to do the same again in March. Global economic conditions appear to be weakening, while domestically, lower oil prices, a decline in business spending and slower inflation may be enough to keep the BoC from raising rates
- China will announce its exports, imports and balance of trade for February on March 8. China’s trade surplus widened in December. A decline in exports was offset by a significant drop in imports. Trade disruptions with the U.S. are having an impact on Chinese exports. Given the recent slowdown in this export-driven economy, this is sure to be a closely watched measure to gauge the impact from the trade dispute with the U.S.
- On March 12, the U.S. inflation rate for February will be announced. U.S. inflation fell from 2.2% to 1.9% in December. U.S. inflation has not been immune from the effects of lower energy prices, as inflation fell over the fourth quarter of 2018. While the U.S. Federal Reserve Board (“Fed”) is closely monitoring inflation, especially the pullback in recent months, the Fed’s outlook for inflation over the long-term remains intact
For investment commentary support (including monthly and quarterly commentaries, as well as MRFPs), contact us today at 1.844.243.1830 or info@ext-marketing.com.
Monday morning briefing – January 28, 2019
The new technologies that European banks are prioritizing. The possible impact of an Amazon chequing account. The shift from passive to strategic beta and active. The practices FINRA will focus on in 2019. And much more in this week’s briefing.
Economic/industry news
International Economic Data Snapshot – includes aggregated data of the worldwide economy: Snapshot: International economic data
The Chinese economy grew 6.4% in the fourth quarter: China sees slowest economic growth since 1990
ECB maintains benchmark refinancing rate at 0%: ECB holds rates steady, guidance unchanged
BoJ holds interest rates steady: Bank of Japan keeps interest rates steady and cuts inflation forecast
Central banks may hold steady in early 2019: What to expect from central banks in 2019
U.S. recession in 2020 possible, according to Ray Dalio: Ray Dalio, founder of the world’s biggest hedge fund, sees a ‘significant risk’ of a possible US recession in 2020
The intertwining of impact investing and philanthropy: How impact investing can amplify philanthropic efforts
Some ESG trends you need to know: Five ESG trends to focus on for 2019
SG funds continue to attract large amounts of capital: Bucking the trend, flows into ESG funds set another record in 2018
Desjardins has launched the Desjardins Alt Long/Short Equity Market Neutral ETF: Desjardins introduces alternative ETF
CIBC launches CIBC Smart Investment Solutions: CIBC combines active and passive strategies in new portfolios
CI Investments launches ETF portfolios: CI introduces actively managed ETF portfolios
Fidelity introduces new ETFs to its lineup: Fidelity launches new factor ETFs, mutual funds
Happy Birthday, TFSA: The TFSA turns 10
On the pulse – New frontiers in fintech
How businesses can seize the opportunity in a fast-changing world: Navigating a world of disruption
How banking experts would launch their brand new bank: How banking providers can get their digital strategy right in 2019
Here are a few technologies that could impact financial services firms this year: Five emerging tech trends to watch in 2019
The asset management industry could benefit from regtech: How regtech will digitally transform asset management in 2019
The potential impact of an Amazon chequing account: An Amazon checking account could displace $100 billion in bank deposits (but it won’t)
Financial services firms should be prepared to enter the “greenfield”: Banks should take a page from fintechs on innovation
A look at some digital transformation myths: Busting five myths of digital transformation
Governments should provide a supportive environment for AI: Artificial intelligence initiatives need government support
How SMEs will benefit from fintech: Emerging fintech innovations set to influence SME lending in 2019
The government shutdown putting the country at risk of cyberattacks: With cybersecurity threats looming, the government shutdown is putting America at risk
Which new technologies European banks are prioritizing: Improving product agility is now a priority for 51% of European Banks, according to Temenos
A view from the inside on new technologies: The promises and pitfalls of new technologies
AI versus humans in the credit decision-making process: AI to outperform human credit decisions by 2024 – survey
IBM a number of health care insurance companies are looking to create a blockchain network for the health care industry: IBM teams up with healthcare firms for blockchain initiative
Understanding of blockchain lacking: New research points to poor understanding of blockchain amongst senior business execs
News and notes (U.S.)
The hedge fund industry experienced $35 billion in redemptions in 2018: 2018 was a challenging year for hedge funds, says eVestment
Center Lake Capital posted a 76% return in 2018: This hedge fund blew the doors off in 2018
Get to know Seth Klarman: Hedge fund billionaire Seth Klarman: The ‘most influential investor you’ve probably never heard of’
JP Morgan’s outlook on the alternative investment industry: JP Morgan’s 2019 Alternatives Outlook highlights opportunities across hedge funds, private equity, private credit, real estate and real assets
The potential drawbacks of the significant capital raises by private equity: The consequences of PE’s fundraising arms race
Natural resources attracting private capital: Private investment in natural resources hits record high
A look at some trends in the U.S. PE industry: More deals, fewer funds and other US PE trends in 9 charts
Shifting from passive to strategic beta and active: ETF providers pivot to strategic beta, active management
Outflows from long-term U.S. funds at its highest level since 2008: Investors showed major risk aversion in 2018
Government shutdown forces Cboe’s withdrawal of its bitcoin ETF application: Cboe’s bitcoin ETF application pulled after repeated SEC delays
Portfolios need to be more diversified, according to BlackRock: BlackRock: Advisors are overweight equities and ill prepared for 2019
Here is what practices FINRA will focus on in 2019: Finra to target online sales practices of broker-dealers
A deep dive into the pros and cons of a wealth tax: Opinion: How a wealth tax would work in the United States
High-net-worth topics
It is getting harder to attract capital from the high-net-worth: Fleeing clients are grim reality in banks’ push to manage wealth
The number of high-net-worth individuals globally expected to grow over the next five years: Global wealthy projected to grow 6.1% annually in next 5 years
The average age of the rich is dropping: Survey of U.S. investors finds the rich are getting younger
How the high-net-worth should handle a divorce: What Jeff and MacKenzie Bezos (and all high-net-worth couples) need to do to avoid a messy divorce
Polls & surveys – What financials are saying
IMF expects global economic growth of 3.5% in 2019 (IMF): IMF cuts world growth forecast to 3.5%
42% believe that the Canadian economy will worsen in 2019 (FPSC): 4 in 10 Canadians think the economy will be worse this year
Almost 75% of portfolio managers expect a recession (BCG): Portfolio managers believe recession is near